💵Prepare Liquidity
Before subscribing to an on-chain fund via Fume, investors need to ensure that they have sufficient liquidity in their wallets. Most fund managers choose a stablecoin, such as USDC (from Circle) or USDT (Tether), as the base currency for the fund. The key requirement is that the liquidity must be available on the correct blockchain network where the fund is deployed (e.g., Ethereum or Arbitrum).
Option 1. Buy Liquidity from an Exchange
The easiest way to prepare liquidity is by purchasing stablecoins (e.g., USDT or USDC) directly from a centralized exchange such as Coinbase, Binance, or Kraken. After purchasing, withdraw the stablecoins to your wallet on the correct network. This method is simple and requires a low level of technical expertise.
Ensure you select the correct network (e.g., Arbitrum or Ethereum) during the withdrawal process to match the fund’s deployment chain.
Example - Kraken and Metamask on Arbritrum One
Let’s walk through an example where:
The fund is deployed on Arbitrum One.
The stablecoin used for the fund is USDC.
The exchange used to buy USDC is Kraken.
The wallet used for interacting with Fume is Metamask.
Step 1: Buy or Deposit USDC on Kraken
Log in to your Kraken account.
If you don't have USDC already, go to the Buy Crypto section and purchase the necessary amount of USDC. If you already have USDC in your Kraken account, you can skip this step.
Alternatively, if you need to deposit USDC from another source into Kraken, use the Deposit feature in Kraken to fund your account.
Step 2: Withdraw USDC to Metamask on Arbitrum One
Navigate to the Transfer section in Kraken.
Select Withdraw, then USDC as the asset to withdraw.
In the Network options, choose Arbitrum One as the chain to withdraw your USDC.
Open Metamask and switch the network to Arbitrum One (you can do this by clicking the network dropdown at the top-left of the Metamask interface).
Copy your Metamask wallet address (on the Arbitrum One network) and paste it into the withdrawal address field on Kraken.
Confirm the withdrawal address by email if it's a new wallet and submit the transaction.
Kraken will now send your USDC to your Metamask wallet on the Arbitrum One network. Once the transaction is confirmed, you will see your USDC in your Metamask wallet.
Step 3: Ensure You Have some ETH for Gas Fees
To interact with the Fume platform and complete the investment, you will need a small amount of ETH in your Metamask wallet to cover transaction (gas) fees on the Arbitrum One network.
If you don't have any ETH on Arbitrum One, follow these steps:
On Kraken, go to the Buy Crypto section and purchase a small amount of ETH—around 0.002 ETH should be sufficient for basic transactions.
Go to the Withdraw section and select ETH.
In the withdrawal options, choose Arbitrum One as the network.
Paste your Metamask wallet address (the same one you used for USDC).
Submit the transaction, and once confirmed, you will have the ETH in your Metamask wallet to cover gas fees.
Now that you have both USDC and ETH in your Metamask wallet on the Arbitrum One network, you are ready to invest in the on-chain fund via Fume.
⛓️On-chain SubscriptionsOption 2. Bridge Liquidity Across Networks
If you already have liquidity in your wallet but on the wrong network, you can use a bridge to transfer the funds to the correct one.
Built-in Swaps: Some wallet apps offer a built-in swap or bridge function that allows you to easily move assets between networks.
Native Bridges: Alternatively, you can connect to a native blockchain bridge like Arbitrum Bridge to transfer your stablecoins to the correct network.
Recommended Approach:
For most investors, the most straightforward way is to purchase stablecoins from a centralized exchange and withdraw them directly to your wallet on the target network. This minimizes the risk of errors and ensures that your liquidity is available for a seamless subscription process.
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